ETE says to proceed with Williams offer despite rejection

July 8 (Reuters) - Pipeline company Energy Transfer Equity
LP said it planned to proceed with its proposal to buy
rival Williams Companies Inc despite being rebuffed,
indicating it may go hostile with the offer.

Energy Transfer offered $48 billion in stock in June but
Williams rejected the proposal, saying it was too low. The
all-stock offer is now worth $44.6 billion as Energy Transfer's
shares have fallen since then.

Energy Transfer said on Tuesday it would take any steps
necessary to acquire the natural gas pipeline company, including
soliciting against Williams' plan to buy its unit Williams
Partners LP.

Williams said last month it would explore a range of
strategic alternatives and retained Barclays and Lazard as
advisors.

"Despite comments made by Williams management ... ETE
continues to be open to engaging in the strategic alternatives
process announced by Williams, but only if it is fair and
evenhanded ...," Energy Transfer said in a statement.
(Reporting by Amrutha Gayathri in Bengaluru; Editing by
Saumyadeb Chakrabarty)